So it probably came as no surprise to the Big Five accounting firm that four more companies -- Abbott Laboratories, Sara Lee Corp., Brunswick Corp. and Northeast Utilities -- joined the growing list of companies that have opted to leave Andersen for another auditing firm.

Andersen Clients Jump Ship*
Company	New Auditor
FedEx	Ernst & Young
Kerr-McGee Corp.	Ernst & Young
Introgen Therapeutics	Ernst & Young
Valero Energy	Ernst & Young
Keystone Automotive Industries	Ernst & Young
Kos Pharmaceuticals	Ernst & Young
Polaris Industries	Ernst & Young
Brunswick	Ernst & Young
Corinthian Colleges	Ernst & Young
SunTrust Banks	PricewaterhouseCoopers
Merck	PricewaterhouseCoopers
Freddie Mac	PricewaterhouseCoopers
Advance PCS	PricewaterhouseCoopers
Rural/Metro Corp.	PricewaterhouseCoopers
ABC Family World	PricewaterhouseCoopers
Harris & Harris	PricewaterhouseCoopers
Wyeth	PricewaterhouseCoopers
Hard Rock Hotel	Deloitte & Touche
EOG Resourcese	Deloitte & Touche
Hudson Respiratory Care	Deloitte & Touche
InMedica Development	Deloitte & Touche
Northeast Utilities	Deloitte & Touche
Delta Air Lines	Deloitte & Touche
Household International	KPMG
Merchant Bancshares	KPMG
Riggs National	KPMG
Amrep Corp.	McGladrey & Pullen
Sara Lee Corp.	undecided
Abbott Laboratories	undecided
eChapman Inc.	undecided
South Trust	undecided
MDU Resources	undecided
ATSi Communications	undecided
Paxar Corp.	undecided
*As of 3/19/02. For an updated list, click here Source: SmartPros Research

While many companies have simply switched auditors, parting on good terms with the accounting firm, some have pointedly dismissed Andersen due to its recent circumstances and involvement in the Enron controversy.

And while Andersen helplessly watches clients leave, its Big Five rivals -- PricewaterhouseCoopers, Ernst & Young, Deloitte & Touche and KPMG -- stand to gain from the mass exodus. This table, right, highlights some of the companies that have dropped Andersen and the chosen replacement firms (where applicable).

But as the Wall Street Journal reports, it's not easy to switch auditors. Overall, reports WSJ, the process "takes time, money and faith." A company that has been a client of an auditing firm for many years -- such as was the case for many of the firms that have recently dumped Andersen -- must acquaint its new auditor to its business, a process that can take as long as one year, says WSJ. Additionally, the company must review the new auditor to be sure it can properly handle its business' books, and is required by the Securities and Exchange Commission to report the dismissal within a specific time frame. 

Upon the indictment that was slapped on Andersen last week by a federal grand jury, the SEC quickly assured more than 3,000 Andersen clients that the agency would continue to accept financial statements audited by Andersen.

The SEC said Andersen assured the agency that it "will continue to audit financial statements in accordance with GAAP and applicable professioanl and firm auditing standards, including quality control standards." Andersen also told the SEC that if it becomes unable to continue to provide those assurances, it will advise the SEC immediately.

The SEC released Monday requirements for Arthur Andersen auditing clients, which can be obtained from the SEC Web site. For companies that drop Andersen as their auditor, the SEC will accept filings that include unaudited financial statements, but issuers electing this alternative will be required to amend their filings within 60 days to include audited financial statements.

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